Basic Liability Car Insurance Coverage
Wherever you live, you’ll need some form of this car insurance to legally drive your car. It covers the expenses for others if you are at fault in an accident. Basic liability covers property damage (like fixing another vehicle if you dent it) and medical or other expenses incurred by the other party.
Comprehensive and Collision Car Insurance Coverage
If your car is not insured and involved in an accident, you might have to pay to rent a car or cover repairs yourself. Comprehensive and Collision coverage as part of your car insurance policy is a much better value because, even if you’re not involved in an accident, you can still be protected against theft, fire, vandalism and windshield damage. Want to reduce your monthly auto insurance payment? Choose a higher deductible.
Uninsured or Underinsured Motorist Car Insurance Coverage
You obviously feel responsible for having auto insurance; unfortunately, not everyone does. That’s why this coverage is required in many states. Even if it’s not required, consider protecting yourself and your family with this car insurance policy so you can make sure you get back on the road-and back to work-quickly.
How to Get Online Auto Insurance Quotes
Auto insurance is one of those very necessary costs for almost any household. Those who need to commute to a job, take kids to school, get to the grocery store or otherwise have individual transportation often need their own vehicle. For almost any driver, car insurance is legally required in order to use a vehicle. The Internet makes shopping for car insurance policies a lot easier, since drivers can get online auto insurance quotes quickly and compare them for possible savings.
Getting an online auto insurance quote from 21st.com will help you save time and energy. While the process is simple, there is some essential knowledge that will ensure you get the best coverage for your money.
Determine Your Insurance Needs Before You Buy Car Insurance Online
Establish a definitive list of your auto insurance needs before getting an online auto insurance quote. There are two separate aspects to this list — the legal requirements of your state and your own coverage needs.
First, determine exactly what your state’s minimum coverage requirements are. Each state is different, so make sure you thoroughly research what you need. This is your auto insurance coverage ground level and you can work up to build a policy that perfectly fits your needs.
The rest is based on your assets, driving record, and comfort.
The amount of coverage you want covered for bodily injury and property damage liability insurance is something to carefully consider. Given today’s medical and repair or replacement costs, you want to make sure that you are prepared with adequate protection. It is highly suggested that you purchase enough coverage to insure your own financial security in case of an accident.
Next, checking into your driving record can unveil a wealth of information. This may help you understand why you are paying your current price for auto insurance. Perhaps there is a speeding ticket from a few years back or a small fender-bender that you will need to take into account during the insurance quote process.
Finally, there is your comfort level. Consider extra coverage if you have a newer vehicle, are nervous about losing your car for a week or two and not having extra money for a rental, or simply want to make sure that potential repair bills will be covered. This is the portion you have the most control over — do you want to pay more for peace of mind or save some extra cash on a lower deductible? With a little thought on this point you will know the answer.
Check for discounts when you quote auto insurance online
Make sure to check on what discounts may be available to you prior to buying auto insurance online 21st Century Insurance offers competitive discounts, including a discount for good students and buying a vehicle with safety features like airbags and Anti Lock Brakes (ABS). A little due diligence could uncover cost-savings.
Keep Consistent Coverage when you buy car insurance online
If you are switching auto insurance companies, be especially careful to avoid gaps in coverage. If your current insurance policy expires and your new one has a few days before going into effect, you could be left without coverage. This is not only unsafe, but may be illegal.
To ensure this situation doesn’t happen to you, wait until your new policy goes into effect prior to canceling your old one (if changing mid-policy). If you are changing at the end of your current policy, work closely with a 21st Century representative to ensure that your policy will keep you covered.
Also, when canceling mid-policy, be sure to get confirmation of the termination in writing from your current insurance provider. You will have proof if there are any issues in receiving refunds of an unused premium, just in case.
So you want to know about car insurance huh? Well here we go…
Car insurance typically offers 4 different coverages. Liability for injuries to others and damage to their property, Physical Damage Coverage for your car or cars (Also referred to as Comp & Collision), Medical Expenses also known as PIP (Personal Injury Protection) or No-Fault Coverage & Uninsured/Underinsured Motorist Protection for you and your family if you sustain a loss by someone who carries no insurance or lower limits than you do. These 4 basic coverages are required by the State of New York if you want to register a vehicle.
The State of New York is what they call a No-Fault state and all that means is no matter who is at fault, in the accident, your policy pays your medical bills and their policy pays their medical bills.
So with that being said, NY Auto Insurance is meant to protect you in the event that you cause injury or damage to others due to an auto accident. When you’re shopping for car insurance, there are several options to choose from—the most important is making sure the coverage that you purchase meets your needs. After all you are protecting your life and your investments, along with your loved ones around you.
Here is a basic overview of car insurance.
Liability Coverage is the number one most important coverage. If you cause an accident, injure someone or damage their property, this coverage is what will pay up to the limits you’ve selected. This coverage will also defend you if a lawsuit results due to an auto accident.
Comprehensive Coverage also referred to as Other than collision gives you coverage for missiles, falling objects, fire, theft, vandalism, riot, civil commotion, contact with bird or animal and we all know about the deer in NY state & breakage of glass…all too well.
Collision Coverage is for damage to your vehicle caused by hitting another car or object, your vehicle is hit by another car or if your vehicle rolls over.
If you have a loan on your vehicle most banks require you carry Comprehensive & Collision Coverage until the loan has been satisfied.
Medical Payments help pay for small injuries to anyone in your vehicle regardless of who is at fault in the accident.
Uninsured/Underinsured Motorist Coverage will help pay for damages and medical expenses if you’re hit by someone with no insurance or lower limits of liability than you carry.
Personal Injury Protection (PIP) which in the state of New York is referred to as No-Fault Coverage. This pays for medical expenses and sometimes lost wages no matter who is at fault in the accident.
Understanding NY Car Insurance is a daunting task and having a local agent that can explain the coverage is very helpful. We at Gates-Cole Insurance pride ourselves in case-by-case customer service and being able to assist our clients in purchasing the protection they need.
Car Insurance Progressive Rate Discounts: Safe Driver
Progressive auto insurance offers numerous rate discounts to their customers. One of the largest Progressive savings is their safe driver discount program which offers drivers a lower rate if they have had no accidents and no tickets in the past three years. Progressive touts this discount as being the highest with an average exceeding 30%.
Progressive Multi-Car Insurance Discounts
Progressive car and truck insurance policies also offer an automatic multi-car policy discount which allows customers to combine an insurance policy with virtually anyone who resides in the household. The average insurance savings is 10% nationally based on customers surveyed in the past 2 years.
Progressive Car Home Bundling Discounts
A significant multi-line discount applies to those customers who bundle their auto and property homeowners insurance with Progressive. The savings adds up and most customers prefer to have their home and auto insurance with the same company for simplicity and easy access to information. Other bundling options with Progressive include motorcycle with homeowners or even boat with homeowners. The more you bundle, the more you save.
Progressive Automotive Snapshot Discount Program
As shown above, safe driver discounts are often substantial and those who choose to use the Snapshot Program can save even more. The Snapshot program allows Progressive to issue a personal rate that saves customers an average of $130 annually, considering national data. Progressive tracks the way you drive by using an app or a plug-in device. It even offers tips for safer driving to boost your safe driver score. Some things to keep in mind are limiting hard braking and rapid acceleration, refraining from driving from 12:00 a.m. to 4:00 a.m., which are the most dangerous times to drive.
Other Progressive Car Insurance Discounts
Progressive rewards students as well with their Good Student insurance discount. These are just a few of the many discounts offered to drivers by Progressive automotive insurance. Discounts are applied by our agents as you go through the quoting process. It only takes a few minutes to receive a detailed quote for your car or truck from Montgomery & Associates Insurance & Financial Services. In true Progressive form, our company’s agents also share quotes from Progressive’s competitive carriers to offer you the best coverage at the best rate.
Getting car insurance quotes easily and quickly
After spending countless hours finding your perfect car, choosing the right car insurance is a significantly less exciting task. It’s boring and most of all, it’s very expensive. Still, when it comes to protecting your investment, shopping around and getting car insurance quotes is really the only way to go. Given its necessity, let us outline some ways to save on car insurance, as well as how to compare car insurances quotes quickly and easily.
How to get car insurance quotes simply and easily
If you don’t want to spend your entire day dealing with car insurance companies (um, who does?), make sure you have all the following information present for your quote.
- Your and any drivers on the policy driver’s license and personal information: This includes date of birth, address, occupation, and marital status.
- Your Car: The VIN of your or a potential vehicle—every vehicle, regardless if it’s from a private seller or still at a dealership has a VIN. It’s unique to every vehicle and tracks the individual history of the vehicle. If you can’t provide an exact VIN, make sure you can at least provide the year, make, and model. However, you’ll eventually need the VIN.
- Date of purchase
- Driving History: Your and any drivers recent driving history including accidents, citations, claims, or completed driving courses.
- Insurance Record: Some car insurance companies require you have six months to a year of continuous auto insurance prior to issuing you a policy. So, make sure you have an idea of your insurance background.
Don’t be fooled by “free” car insurance quotes
Lots of companies advertise their ability to give free auto insurance quotes. Any car insurance (or home and renters, for that matter) quote you receive is and should be free. Insurance companies want to incentivize you to get a car insurance quote with them, so they’re not going to charge you for that service. When shopping around for insurance, make sure you don’t fall for their advertisements of “free.”
What goes into your quote
After getting your car insurance quote, you might wonder what exactly they are factoring in. Within any type of insurance, the main goal of the company is to better predict where risk will occur so they can financially prepare themselves for it. In order to do this, car insurance companies look at your entire driving profile. There are many things that go into your rate that are dependent and independent of you and your driving history. But, the general factors we are going to focus on will be where you live, who you are, your insurance history, how you drive, and what you drive.
Where you live
Because most forms of insurance are regulated at the state level, state legislation can influence the ways insurance companies do business in certain states. In Michigan, a no-fault state, state regulation requires an unlimited amount of Personal Injury Protection coverage which drastically increases the cost of car insurance. Below is our State of Insurance analysis, featuring the most expensive and least expensive states to get auto insurance. Although we have this broken down by state, insurance quotes are determined as granularly as your zip code.
Looking at your car insurance premium in greater detail, car insurance quotes are calculated based on your zip code. If you live in a zip code that is heavily populated, with a high number of claims filed the previous year, you can expect your premium to be higher than that of a person living in a less dense and less claim-laden part of town. Even if you haven’t filed any claims, you could be paying more based solely on the area of town in which you live.
How gender affects car insurance quotes
Unless you’re a teen driver, your gender isn’t a significant rating factor. In fact, the national difference between car insurance premium paid by women versus men is less than 1%. For teenagers, this premium difference is much more dramatic with male teen drivers paying nearly $600 more per year than female teens. Again, this comes back to the main goal of an insurance company – anticipating and preparing for risk exposure. Car insurance companies use historical data which tells them young male drivers are more likely to take greater risks while driving than female drivers in the same age group. And, and we’ll see with our other section, any time there is any risk an insurance company will protect themselves by charging higher premiums.
How age influences auto insurance rates
Your age goes a long way toward determining your car insurance premium. Statistically, a young driver is less experienced and thus more likely to receive a citation or cause an accident. In the eyes of an insurance company, that means more risk and a greater need for financial protection, i.e., higher premiums for younger drivers. This is similar to what we’ve seen with male versus female premiums in the teen years.
The step change in premium does begin to decrease once you turn 19 and again at 25 as car insurance companies begin to see you as less likely to drive recklessly. This remains consistent until you get into your 60s, where your rate begins to increase.
How marital status affects car insurance quotes
While the difference is small, married car insurance clients do see some savings compared to those who are single, divorced, or widowed. Looking back to the idea of mitigating risk, car insurance companies see individuals who are married as more likely to share driving responsibilities. Moreover, historical data shows that married couples are less likely to file claims than are unmarried couples. All of this equates to a less expensive client to insure.
How education level affects auto insurance quotes
How credit score raises or lowers car insurance premiums
Unlike your education level or gender, your credit has a big impact on your insurance rate. Drivers with poor credit (524 or below) pay more than twice what those with excellent credit (823 or more) pay for auto insurance. Again, this has to do with how insurance companies view drivers with poor credit in terms of risk. Typically, a driver with poor credit is more likely to file a claim than a driver with excellent credit. Moreover, when a claim is filed by a driver with poor credit, the claim payout by the insurance company tends to be higher. Insurance companies cover their risk by charging those with poor credit scores higher rates.
Your past insurance
It’s important to consider how your previous car insurance history reflects on your car insurance quotes. Gaps in car insurance or maintaining the bare minimum coverage can increase your quote, as insurance companies see you as financially unstable and thus risky to insure. A long insurance history with high limits can help lower your insurance premium going forward.
How you drive
How your drive entails more than you might think. Within your car insurance quote, an insurance company will look at the primary way you use your vehicle, how many miles you drive annually, and your driving record.
- Vehicle use
- Annual mileage
- Driving violation
Primary vehicle use: how you drive and your car insurance quotes
How you use your vehicle can have big impacts on your car insurance quotes. Using your vehicle for pleasure, the category under which most people typically insure their vehicle, will place your premium at around $1,427 annually. However, if you’re a traveling salesman who uses your vehicle for that purpose, your average increase could total $152 per year.
It’s important to consider the difference between a business-use personal policy, which is outlined above, and a commercial car insurance policy. If you’re using your vehicle to transport goods, lending your vehicle our to your employees, or similar situations, you probably need to get a commercial insurance policy.
If you’re working for Uber and Lyft, you should speak with your insurance company about getting a Rideshare Endorsement. With this endorsement, you often don’t need to change any aspect of your policy and it protects you from getting denied coverage if you’re in an accident while working. For more information on this type of coverage, see here.
How annual mileage affects car insurance quotes
Annual mileage is a tricky aspect for companies to cover in their car insurance quotes. If you live in California, the only state where mileage makes a significant impact, it’s less of a gray area. On average, there is a 25% premium increase for that state in average annual premium between those who drive 0-7,500 miles per year and those who drive more than 15,000 — about $370 per year.
If you live anywhere else in the US, mileage may have less of an impact, but it isn’t ignored.
Violations: how driving safety impacts auto insurance quotes
When we look at the big things that impact your car insurance quotes, driving history is probably the most significant. The reason for this is pretty simple, how you have driven is a pretty good indicator of how you will drive. So, if you have a history of speeding tickets, at-fault accidents, or any other kind of violations, you can expect your premium to reflect that. In other words, your premium is going to be high.
Things like speeding tickets, DUIs, and other violations can drastically increase your premium and your car insurance quotes. Of the major driving violations, a DUI can raise your rate as high as 80% — with some states seeing an increase of 185% (California). If you have a poor driving history, you can expect auto insurance companies to charge you accordingly.
What you drive
Naturally, a big factor in your car insurance quote is the car you drive. Vehicles built for performance, with high MSRP (manufacturer’s suggested retail price) — and foreign-built models — tend to be costlier to insure. Vehicles that don’t cost as much to repair or aren’t built for riskier driving (i.e., powerful engines), such as a van or sedan, are correspondingly cheaper to insure.
Best ways to keep your car insurance quote low
Now that we’ve outlined why it can cost so much to get an auto insurance quote, let’s look at some big ways to save.
Be smart with your claims
As we outlined with your violation history, having at-fault accidents on your insurance record can seriously hurt you. But, if you’re not very familiar with the way insurance companies price policies, you might be inclined to use your collision coverage if you’ve damaged your vehicle. But unless you’ve done significant damage to your vehicle, most of the time it will make more sense financially to pay for damages to your vehicle yourself than involve your insurance company.
Here’s a quick breakdown to determine whether or not you should file a claim:
- Get an estimate for the repairs at a local mechanic shop
- Use our State of Insurance analysis to determine what the average premium increase would be if you were to file a claim in your state. Remember to think about this value over 3 years.
- Compare the cost of repairs to the total rate of increase plus your deductible to the total cost of repairs. Whichever is cheaper in the long-term, do that.
Be smart with your coverage
When you’re getting car insurance quotes, an agent you speak with might be throwing on coverage that you don’t really need. Unlike your home, the value of your vehicle depreciates. In terms of your car’s insurance, the coverage you once had might not be necessary. For example, collision and comprehensive coverage. These coverages are designed to protect your vehicle from damage. But if your vehicle is worth less than $4,000, it’s generally thought that the value of insurance payout you would receive doesn’t justify the value of premium you are paying.
So, when shopping for car insurance quotes, have a good idea of what your vehicle is worth. You can do this through Kelley Blue Book and NADA (do both). If, however, you determine that your vehicle is worth more than $4,000 but you’d still like to save money, consider raising your deductible. Because your car insurance deductible and premium are inversely related, you can lower your bill by raising your deductible. Looking at the chart below, you can see how your premium is affected by removing your deductibles as well as raising them.
Double check for discounts
Some of the discounts that an insurer will offer are automatically added to your auto insurance policy when they pull your driving report. But, you will want to make sure they’re not forgetting anything. Here are some potential discounts and cost-cutting programs you can participate in. Certain restrictions apply, of course.
- Multi-policy discount
- Good driver discount
- Good student discount (ages 16-25)
- Good/safe teen driving discount (pre-approved safety training course)
- Telematic programs
- Payment by bank account
- Paid in full discount
- eSignature discounts
- Paperless billing discount
- Multi-vehicle discount
- Safe driving senior discount
As you can see from the data and evidence we presented, your auto insurance quotes can vary based on the details of your life. So, any time you change, your premium will change as well. What this means is that you should shop around for new car insurance quotes as often as possible! For the most part, you’re not locked into a contract with your insurance company. If you find a better rate elsewhere, you’re able to cancel your current policy and move on to the next. The remaining unused premium should be refunded back to you. Opportunities to look for cheaper rates are when you move, add or change a car to your policy, get married, or have a birthday.